The Legal System Of Trust Property Research In China

The development of China’s financial industry is in a rapid pacerecent years, and the growth of trust industry, as a rising star, isvery impressive. According to reports, the scale of China’s trustassets is amounted to4.811438trillion CNY as of December31,2011. Trust industry, following the banking, securities and insurance,is becoming the fourth pillar of China’s financial industry. Thefinancial product of trust is getting more and more attentionbecause of its high rate of return on investment.Trust Law was originated in the common law system. Whiletransplanting trust framework, we will inevitably encounter theproblem of how to integrate and coordinate the theory of trust lawwith our own legal system, and this problem is particularlyprominent in the design of the system of trust property. It has beenmore than a decade after The Trust Law of the People’s Republic ofChina (“PRC Trust Law”) promulgated in2001and some flaws ofPRC Trust Law have become apparent. There is an increasinglyvoice to request the amendment of PRC Trust Law or theformulation of relevant judicial interpretation.Taiwan’s Trust Law came into force on January1996. Mainland and Taiwan are both belong to Chinese Nation. The two sides joinsimilar cultural and legal tradition. The trust laws of two sides wereformulated in a similar time. Therefore, this thesis will try to analysistrust property system of PRC Trust Law in the perspective ofcomparing with Taiwan’s Trust Law.The paper has five chapters in total. Chapter One will introducethe origination of trust system and definition of trust relationship,focusing on the difference of the trust relationship betweencommon law system and civil law system. Chapter Two will analyzethe framework of PRC Trust Law, including the formation, changeand termination of trust relationship and rights and obligations ofthe parties of a trust relationship. Chapter Three will look at thedetail of trust property system stipulated in PRC TrustLaw, such as the independence of the trust property, thepublication system of trust and the subrogation of trust property.Chapter Four will compare the trust property system in Mainlandand Taiwan and point out the merit of Taiwan’s Trust Law for us torefer. Chapter Five is the conclusion of the thesis which will givepersonal views and suggestions for the improvement of trustproperty system.